AMN Healthcare Q3 2020 Earnings Report
Key Takeaways
AMN Healthcare reported Q3 2020 revenue of $552 million, a 3% decrease year-over-year. While nurse staffing showed strength due to the COVID-19 pandemic, other service lines experienced continued impacts. Net income and adjusted EBITDA both increased by 11% year-over-year.
Third quarter financial results exceeded guidance, driven by strong nurse staffing demand related to the COVID-19 pandemic.
Revenue was $552 million, a 3% decrease compared to the prior year, with organic revenue down 9%.
Demand for nurses and allied professionals reached record high levels, with improving trends in most other service lines.
Net income was $26 million and adjusted EBITDA was $77 million, both up 11% year-over-year.
AMN Healthcare
AMN Healthcare
AMN Healthcare Revenue by Segment
Forward Guidance
The company expects revenue in the fourth quarter of 2020 to be up sequentially but flat to down 2% from prior year.
Positive Outlook
- Nurse and Allied Solutions segment revenue is expected to be flat to slightly down year over year.
- Travel nurse staffing revenue is expected to be up at least 15% from prior year, with lower volumes offset by higher rates and hours worked.
- Allied revenue is expected to be lower than prior year by about 15%.
- Technology and Workforce Solutions segment revenue is expected to rise approximately 150% compared with prior year due to the acquisitions of Stratus Video and b4health.
- Gross margin is expected to be between 32.4% and 32.7%.
Challenges Ahead
- Revenue in the fourth quarter of 2020 is expected to be flat to down 2% from prior year.
- For the Physician and Leadership Solutions segment, revenue is expected to be down from prior year by 26-28% due to generally stable but weaker demand due to the pandemic.
- SG&A as percentage of revenue is expected to be approximately 20.5%.
- Operating margin is expected to be between 7.6% and 8.1%.
- Adjusted EBITDA margin is expected to be between 13.3% and 13.8%.